SunOpta, the Canadian organic food specialist, has agreed to sell its Opta Minerals business to private equity firm Speyside Equity Fund for around $6.2 million, as it looks to focus on its core food distribution business.
The sale follows a strategic review undertaken of its specialist minerals business undertaken by SunOpta in June 2014.
SunOpta, which owns a 66 percent stake in Opta Minerals, said it would receive around $4.2 million in cash from the sale, which means it is moving out of the minerals business which it deems as not core.
Opta Minerals, which processes, distributes and recycles industrial minerals, made revenues of $141million and $7 million in operating profits in 2013, according to its latest results.
SunOpta tried to sell Opta Minerals in 2011 but shelved the potential sale in light of economic conditions.
Rik Jacobs, president and chief executive of SunOpta said: “The sale of Opta Minerals represents a significant milestone, and we are pleased to be concluding this chapter of our company’s history as it paves the way for SunOpta to truly become a pure-play health and organic foods company.”
Jacobs said the sale would mean that SunOpta would have more financial flexibility going forward.
As part of the deal, Opta Minerals will delist from the Toronto Stock Exchange in March this year.
